CHANGZHOU, China, May 24, 2012 /PRNewswire-Asia/ -- China Kanghui
Holdings (NYSE: KH) ("Kanghui" or the "Company"), a leading
domestic developer, manufacturer and marketer of orthopedic
implants in China, today announced
its unaudited financial results for the first quarter of 2012.
First Quarter 2012 Highlights
- Total net revenue for the first quarter of 2012 increased by
21.6% year-over-year to RMB82.7
million from RMB68.0 million
in the corresponding period of the prior year.
- Gross profit for the first quarter of 2012 increased by 20.3%
year-over-year to RMB58.6 million
from RMB48.7 million in the
corresponding period of the prior year.
- Operating income for the first quarter of 2012 increased by
5.7% year-over-year to RMB31.5
million from RMB29.8 million
in the corresponding period of the prior year.
- Net income for the first quarter of 2012 increased by 35.0%
year-over-year to RMB29.7 million
from RMB22.0 million in the
corresponding period of the prior year.
- Non-GAAP[1] net income for the first quarter of 2012 increased
by 39.7% year-over-year to RMB32.7
million from RMB23.4 million
in the corresponding period of the prior year.
Mr. Libo Yang, Chief Executive Officer of the Company,
stated, "We are very pleased that Kanghui once again delivered
another strong quarterly financial performance in the first quarter
of 2012, marking the seven consecutive strong quarter since our
IPO. We focused strategically on growing our brand in
the important China market, and
thereby continued to expand our market share along with our robust
domestic revenue growth in the first quarter of 2012. During
the quarter, we successfully launched a new spine product that is
seeing very good market uptake, and we experienced significant
growth in both our trauma and spine segments."
Ms. Sarah Wang, Chief Financial Officer of Kanghui,
commented, "Our strong first quarter financial results reflect our
ability to consistently execute on our growth strategy.
Leveraging our strong cash position and consistently positive cash
flows, we further enhanced our competitive advantages by expanding
our professional management team, domestic distribution network,
and development of a broader product line. We are excited
with having a very promising new product pipeline that we intend to
launch during the remainder of 2012 and beyond."
First Quarter 2012 Financial and Operating Results
Net revenue increased by 21.6% year-over-year to RMB82.7 million ($13.1
million)[2] in the first quarter of 2012 from RMB68.0 million in the corresponding period of
the prior year. Net revenue from trauma products increased by
22.9% year-over-year to RMB51.6
million ($8.2 million) in the
first quarter of 2012 from RMB42.0
million in the corresponding period of the prior year. Net
revenue from spine products increased by 34.9% year-over-year to
RMB25.9 million ($4.1 million) in the first quarter of 2012 from
RMB19.2 million in the corresponding
period of the prior year. Net revenue from OEM products decreased
by 23.5% year-over-year to RMB5.2
million ($0.8 million) in the
first quarter of 2012 from RMB6.8
million in the corresponding period of the prior year.
Domestic sales of proprietary products increased by 28.5%
year-over-year to RMB64.4 million
($10.2 million) in the first quarter
of 2012 from RMB50.1 million in the
corresponding period of the prior year, while international sales
of proprietary products increased by 18.0% year-over-year to
RMB13.1 million ($2.1 million) in the first quarter of 2012 from
RMB11.1 million in the corresponding
period of the prior year.
In the first quarter of 2012, cost of revenue increased by 24.9%
year-over-year to RMB24.1 million
($3.8 million) from RMB19.3 million in the corresponding period of
the prior year. Gross profit increased by 20.3% year-over-year to
RMB58.6 million ($9.3 million) in the first quarter of 2012 from
RMB48.7 million in the corresponding
period of the prior year. Gross margin for the first quarter of
2012 was 70.9%, compared to 71.6% in the corresponding period of
the prior year.
Selling expenses increased by 40.0% year-over-year to
RMB9.8 million ($1.6 million) in the first quarter of 2012 from
RMB7.0 million in the corresponding
period of the prior year. General and administrative expenses
increased by 36.5% year-over-year to RMB14.2
million ($2.3 million) in the
first quarter of 2012 from RMB10.4
million in the corresponding period of the prior year.
Research and development expenses increased by 106.7%
year-over-year to RMB3.1 million
($0.5 million) in the first quarter
of 2012 from RMB1.5 million in the
corresponding period of the prior year.
Operating income increased by 5.7% year-over-year to
RMB31.5 million ($5.0 million) in the first quarter of 2012 from
RMB29.8 million in the corresponding
period of the prior year. Operating margin decreased to 38.1% in
the first quarter of 2012 from 43.8% in the corresponding period of
the prior year.
Income tax expense in the first quarter of 2012 was RMB6.3 million ($1.0
million), representing an effective tax rate of 17.7%,
compared to an income tax expense of RMB9.0
million in the corresponding period of the prior year.
Net income was RMB29.7 million
($4.7 million) in the first quarter
of 2012, representing a year-over-year increase of 35.0% from
RMB22.0 million in the corresponding
period of the prior year. On a diluted per ADS[3] basis, the
Company reported net income per diluted ADS of RMB1.15 ($0.18) in
the first quarter of 2012, compared to a net income per diluted ADS
of RMB0.87 in the corresponding
period of the prior year.
Non-GAAP net income, which excludes share based compensation
expenses, increased by 39.7% to RMB32.7
million ($5.2 million) from
RMB23.4 million in the corresponding
period of the prior year. The Company reported non-GAAP net income
per diluted ADS of RMB1.26
($0.20) in the first quarter of 2012,
compared to a non-GAAP net income per diluted ADS of RMB0.93 in the corresponding period of the prior
year.
During the first quarter of 2012, the Company had a weighted
average diluted share count of 155.0 million shares (equivalent to
25.8 million ADSs), compared to 150.9 million shares (equivalent to
25.2 million ADSs) in the corresponding period of the prior
year.
Balance Sheet
As of March 31, 2012, the Company
had cash and cash equivalents of RMB324.2
million ($51.5 million),
compared to RMB380.1 million as of
December 31, 2011. As of March 31, 2012, the Company held short-term
investments of RMB111.9 million
($17.8 million), compared to
RMB77.0 million as of December 31, 2011.
Business Outlook
Mr. Yang added, "The strong first quarter provides us with good
momentum for the remainder of 2012. Following our successful
launch of a new spine product in the first quarter, we are
launching one additional spine product in the second quarter, and
two new trauma products and three new joint products in the second
half of 2012. With our new joint products in place, we expect to
kick start our reconstructive joint segment in the second half of
2012, which we believe can become a major revenue driver of the
Company going forward."
The Company reiterates that it anticipates revenue for full year
2012 will be in the range of RMB392 million
to RMB403 million, which represents year-over-year growth of
20% to 23%. The Company also estimates its full year 2012
non-GAAP net income to be in the range of RMB146 million to RMB153 million.
Non-Cash Share-Based Compensation
Expenses Discussion
The Company recognized non-cash share-based compensation
expenses of RMB3.0 million
($0.5 million) in the first quarter
of 2012.
The Company classified these non-cash share-based compensation
expenses in its costs of revenue, selling expenses, general and
administrative expenses as well as in research and development
expenses. The break out of these expenses per line item is provided
in the financial tables attached to this press release.
The Company has provided a non-GAAP presentation of results
which excludes the non-cash share-based compensation expenses.
Please refer to the non-GAAP presentation provided in the appendix
for a year-over-year comparison of non-cash share-based
compensation expenses. The Company believes that this non-GAAP
presentation is a helpful tool for the Company to plan and forecast
future periods and both management and investors benefit from
referring to such non-GAAP presentation in assessing the
performance of the Company.
Conference Call
Kanghui will hold a corresponding conference call and live
webcast at 8:00 a.m. ET (8:00 p.m. Beijing Time) on Friday, May 25, 2012 to discuss first quarter
2012 results and answer questions from investors. Listeners
may access the call by dialing:
US Toll
Free:
|
1-866-519-4004
|
US
Toll/International:
|
1-718-354-1231
|
Hong Kong
Toll Free:
|
800-930-346
|
Hong Kong
Toll:
|
852-2475-0994
|
China Toll
Free:
|
800-819-0121
|
China Toll
Free (Mobile):
|
400-620-8038
|
Conference
ID:
|
76263126
|
A replay of the webcast will be accessible through June 1, 2012 on http://ir.kanghui.com or by
dialing:
United
States toll free:
|
+1-866-214-5335
|
US
Toll/International:
|
+1-718-354-1232
|
Passcode:
|
76263126
|
About China Kanghui Holdings
Founded in 1997, Kanghui is a leading domestic developer,
manufacturer and marketer of orthopedic implants in China. The Company offers a wide array of
proprietary orthopedic implant products in trauma and spine, and
has an extensive nationwide network of distributors for its
products in China, as well as in
29 other countries. Kanghui has strong research and development
capabilities, focused on developing new proprietary products and
product lines, and enhancing existing products and product lines.
For more information, please visit www.kanghui.com.
Use of Non-GAAP Financial Measures
The Company has included non-GAAP financial measures in this
press release. Non-GAAP financial measures are defined as GAAP
gross profit excluding non-cash share-based compensation expenses,
operating income excluding non-cash share-based compensation
expenses, net income excluding non-cash share-based compensation
expenses, net margin excluding non-cash share-based compensation
expenses, basic earnings per share and per ADS excluding non-cash
share-based compensation expenses, and diluted earnings per share
and per ADS excluding non-cash share-based compensation expenses.
The Company believes that management and investors benefit from
referring to the non-GAAP financial measures in assessing the
performance of the Company and when planning and forecasting future
periods. These non-GAAP operating measures are useful for
understanding and assessing underlying business performance and
operating trends. The use of non-GAAP financial measures has
limitations and readers should not consider non-GAAP financial
measures in isolation from or as alternatives to consolidated
financial metrics prepared in accordance with U.S. GAAP. Readers
are encouraged to refer to the reconciliation of non-GAAP measures
to GAAP measures included herein.
Safe-Harbor Statement
This press release contains statements of a forward-looking
nature, including, among other things, the Company's unaudited
operating results for 2012, new product introductions and the
respective timetable, the demand for joint reconstruction products
in China, future prospects of the
Company and the ability for the Company to realize its business
plans for 2012. These forward-looking statements are not historical
facts but instead represent only the Company's belief regarding
expected results and events, many of which, by their nature, are
inherently uncertain and outside of the Company's control. The
actual results and other circumstances of the Company may differ,
possibly materially, from the anticipated results and events
indicated in these forward-looking statements. Announced results
for the first quarter of 2012 are preliminary, unaudited and
subject to audit adjustment. Adjustments to the financial
statements may be identified when audit work is performed for the
year-end audit, which could result in significant differences from
this preliminary unaudited financial information. These statements
are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including certain plans,
expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. These forward-looking
statements may include, but are not limited to, statements
containing words such as "may," "could," "would," "plan,"
"anticipate," "believe," "estimate," "predict," "potential,"
"expects," "intends" and "future" or similar expressions. These
forward-looking statements speak only as of the date of this press
release and are subject to change at any time. These
forward-looking statements are based upon management's current
expectations and are subject to a number of risks, uncertainties
and contingencies, many of which are beyond the Company's control
that may cause actual results, levels of activity, performance or
achievements to differ materially from any future results, levels
of activity, performance or achievements expressed or implied by
such forward-looking statements. The Company's actual results could
differ materially from those contained in the forward-looking
statements due to a number of factors, including the Company's
beliefs regarding its strengths and strategies; the Company's
ability to expand its international business; the Company's ability
to develop and successfully market new products in China and internationally; the Company's
current expansion strategy, including its ability to expand its
manufacturing and research and development facilities and
capabilities and the Company's future prospects, business
development, results of operations and financial condition. The
financial information contained in this release should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Company's annual report on Form 20-F for
the fiscal year 2011, as filed with the Securities and Exchange
Commission on April 30, 2012, and are
available on the Securities and Exchange Commission's website at
www.sec.gov. For additional information on these and other
important factors that could adversely affect our business,
financial condition, results of operations, and prospects, please
see "Risk Factors" that begins on page 6 of the Company's annual
report for fiscal year 2011 and in documents subsequently filed by
the Company from time to time with the Securities and Exchange
Commission, which can be found on the Company's website at
www.kanghui.com or at www.sec.gov.
Contact Information
China Kanghui Holdings Investor Relations Department
+1-888-321-2558
Asia Bridge Capital Limited
Carene Toh
+86-186 1835 6339
carene.toh@asiabridgegroup.com
China
Kanghui Holdings
|
Summary
- First Quarter 2012
|
(RMB in
thousands, except for per share data and per ADS
data)
|
|
Three
Months Ended
March 31,
|
|
2011
|
2012
|
|
Unaudited
|
Unaudited
|
Net
revenue
|
67,975
|
82,713
|
Gross
profit
|
48,716
|
58,572
|
Non-GAAP
gross profit
|
48,766
|
58,605
|
Operating
income
|
29,804
|
31,486
|
Non-GAAP
operating income
|
31,221
|
34,447
|
Net income
attributable to China Kanghui Holdings
|
21,969
|
29,709
|
Non-GAAP
net income
|
23,386
|
32,670
|
Earnings
per share -basic
|
0.16
|
0.21
|
Earnings
per share -diluted
|
0.15
|
0.19
|
Earnings
per ADS -basic
|
0.96
|
1.27
|
Earnings
per ADS -diluted
|
0.87
|
1.15
|
Non-GAAP
earnings per share -basic
|
0.17
|
0.23
|
Non-GAAP
earnings per share -diluted
|
0.16
|
0.21
|
Non-GAAP
earnings per ADS -basic
|
1.03
|
1.40
|
Non-GAAP
earnings per ADS -diluted
|
0.93
|
1.26
|
|
|
|
-
Revenue By Product Category
|
|
|
Trauma
|
42,030
|
51,572
|
Spine
|
19,194
|
25,893
|
OEM
|
6,751
|
5,248
|
-
Revenue by Business Sector
|
|
|
Domestic
|
50,109
|
64,316
|
International
|
11,115
|
13,149
|
OEM
|
6,751
|
5,248
|
China
Kanghui Holdings
|
Consolidated Balance Sheets
|
(Expressed in thousands)
|
|
|
As of
December
31, 2011
|
|
As of
March 31,
2012
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
Audited
|
|
Unaudited
|
Unaudited
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
380,092
|
|
324,202
|
51,481
|
Bills
receivable
|
|
5,873
|
|
3,052
|
485
|
Short-term
investments
|
|
76,998
|
|
111,862
|
17,763
|
Accounts
receivable, net
|
|
87,578
|
|
110,445
|
17,538
|
Inventories, net
|
|
110,907
|
|
126,007
|
20,009
|
Prepayments and other current assets
|
|
13,428
|
|
13,763
|
2,185
|
Deferred
tax assets
|
|
9,090
|
|
10,583
|
1,681
|
Amount due
from related parties
|
|
5,672
|
|
6,803
|
1,080
|
Total
current assets
|
|
689,638
|
|
706,717
|
112,222
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
259,825
|
|
319,232
|
50,692
|
Intangible
assets, net
|
|
62,026
|
|
60,889
|
9,669
|
Prepaid
land lease payments
|
|
22,812
|
|
22,690
|
3,603
|
Goodwill
|
|
155,341
|
|
155,341
|
24,667
|
Long-term
investment
|
|
25,204
|
|
25,190
|
4,000
|
Deposits
for non-current assets
|
|
4,731
|
|
6,331
|
1,005
|
Deferred
tax assets
|
|
2,444
|
|
2,465
|
391
|
Other assets, non-current
|
|
257
|
|
135
|
21
|
Total
non-current assets
|
|
532,640
|
|
592,273
|
94,048
|
Total
assets
|
|
1,222,278
|
|
1,298,990
|
206,270
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
19,278
|
|
21,220
|
3,370
|
Accrued
expenses and other liabilities
|
|
65,388
|
|
105,321
|
16,724
|
Income tax
payable
|
|
5,800
|
|
8,378
|
1,330
|
Uncertain
tax positions
|
|
4,197
|
|
4,152
|
659
|
Amount due
to related parties
|
|
1,137
|
|
1,312
|
208
|
Total
current liabilities
|
|
95,800
|
|
140,383
|
22,291
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
Deferred
government grants
|
|
6,409
|
|
6,290
|
999
|
Deferred
tax liabilities
|
|
14,857
|
|
14,666
|
2,329
|
Total
non-current liabilities
|
|
21,266
|
|
20,956
|
3,328
|
Total
liabilities
|
|
117,066
|
|
161,339
|
25,619
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary
shares (par value of US$0.001 per share; 1,000,000,000 shares
authorized as of December 31, 2011 and March 31, 2012 (unaudited);
140,401,842 shares issued and outstanding as of December 31, 2011
and 140,569,926 shares issued and outstanding as of March 31, 2012
(unaudited))
|
|
1,022
|
|
1,023
|
162
|
Additional
paid-in capital
|
|
912,972
|
|
916,316
|
145,505
|
Accumulated other comprehensive loss
|
|
(19,604)
|
|
(19,646)
|
(3,120)
|
Statutory
reserves
|
|
45,417
|
|
45,417
|
7,212
|
Retained
earnings
|
|
156,387
|
|
186,096
|
29,551
|
Total
China Kanghui Holdings shareholders' equity
|
|
1,096,194
|
|
1,129,206
|
179,310
|
Non-controlling interests
|
|
9,018
|
|
8,445
|
1,341
|
Total
equity
|
|
1,105,212
|
|
1,137,651
|
180,651
|
Total
liabilities and equity
|
|
1,222,278
|
|
1,298,990
|
206,270
|
China
Kanghui Holdings
|
Consolidated Statements of Comprehensive
Income
|
Expressed in thousands, except for number
of shares and per share data
|
|
Three Months Ended March 31,
|
|
2011
|
2012
|
|
RMB
|
RMB
|
US$
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
|
|
|
Net
revenue
|
67,975
|
82,713
|
13,134
|
Cost of
revenue
|
(19,259)
|
(24,141)
|
(3,833)
|
Gross
profit
|
48,716
|
58,572
|
9,301
|
|
|
|
|
Operating expenses
|
|
|
|
Selling
expenses
|
(6,988)
|
(9,760)
|
(1,550)
|
General
and administrative expenses
|
(10,422)
|
(14,207)
|
(2,256)
|
Research
and development expenses
|
(1,502)
|
(3,119)
|
(495)
|
Operating income
|
29,804
|
31,486
|
5,000
|
Interest
income
|
1,719
|
3,867
|
614
|
Government
grants
|
2,706
|
151
|
24
|
Other
income
|
145
|
485
|
77
|
Other
expenses
|
(397)
|
(357)
|
(57)
|
Foreign
exchange loss
|
(3,008)
|
(171)
|
(27)
|
Income
before income taxes
|
30,969
|
35,461
|
5,631
|
Income
taxes
|
(8,982)
|
(6,324)
|
(1,004)
|
Net
income
|
21,987
|
29,137
|
4,627
|
Net
(income) loss attributable to non-controlling interests
|
(18)
|
572
|
91
|
Net
income attributable to China Kanghui Holdings
|
21,969
|
29,709
|
4,718
|
|
|
|
|
Earnings per share
|
|
|
|
Basic
|
0.16
|
0.21
|
0.03
|
Diluted
|
0.15
|
0.19
|
0.03
|
|
|
|
|
Shares
used in earnings per share computation
|
|
|
|
Basic
|
136,828,869
|
140,440,413
|
140,440,413
|
Diluted
|
150,864,399
|
155,007,387
|
155,007,387
|
|
|
|
|
Other
comprehensive loss, net of tax[4]
|
|
|
|
Foreign
currency translation adjustment
|
(203)
|
(42)
|
(7)
|
Total other comprehensive loss, net
of tax
|
(203)
|
(42)
|
(7)
|
Comprehensive income attributable to China Kanghui
Holdings
|
21,766
|
29,667
|
4,711
|
|
|
|
|
Share-based compensation charges incurred during
the period related to:
|
|
|
|
|
|
|
Cost of
revenue
|
50
|
33
|
5
|
Selling
expenses
|
112
|
136
|
22
|
General
and administrative expenses
|
1,207
|
2,762
|
439
|
Research
and development expenses
|
48
|
30
|
5
|
Total
|
1,417
|
2,961
|
471
|
China
Kanghui Holdings
|
Reconciliations of Non-GAAP
Results to GAAP Results of
Operations
|
(RMB in
thousands, except for share, ADS, per share data and per ADS
data)
|
|
|
Three Months Ended
March 31,
|
|
|
2011
|
2012
|
|
|
Unaudited
|
Unaudited
|
|
|
|
|
Net
revenue
|
|
67,975
|
82,713
|
|
|
|
|
Non-GAAP net income
|
|
23,386
|
32,670
|
Non-GAAP net margin
|
|
34.4%
|
39.5%
|
Share-based compensation
|
|
(1,417)
|
(2,961)
|
GAAP net
income
|
|
21,969
|
29,709
|
GAAP net margin
|
|
32.3%
|
35.9%
|
|
|
|
|
Non GAAP
earnings per share -basic
|
|
0.17
|
0.23
|
Non GAAP
earnings per share -diluted
|
|
0.16
|
0.21
|
Non GAAP
earnings per ADS -basic
|
|
1.03
|
1.40
|
Non GAAP
earnings per ADS -diluted
|
|
0.93
|
1.26
|
|
|
|
|
GAAP
earnings per share -basic
|
|
0.16
|
0.21
|
GAAP
earnings per share -diluted
|
|
0.15
|
0.19
|
GAAP
earnings per ADS -basic
|
|
0.96
|
1.27
|
GAAP
earnings per ADS -diluted
|
|
0.87
|
1.15
|
|
|
|
|
Shares
used in computation of:
|
|
|
|
Basic
earnings per share
|
|
136,828,869
|
140,440,413
|
Diluted
earnings per share
|
|
150,864,399
|
155,007,387
|
Basic
earnings per ADS
|
|
22,804,812
|
23,406,736
|
Diluted
earnings per ADS
|
|
25,144,067
|
25,834,565
|
|
|
|
|
Non-GAAP operating income
|
|
31,221
|
34,447
|
Non-GAAP operating margin
|
|
45.9%
|
41.6%
|
Share-based compensation
|
|
(1,417)
|
(2,961)
|
GAAP
operating income
|
|
29,804
|
31,486
|
GAAP operating margin
|
|
43.8%
|
38.1%
|
|
|
|
|
Non-GAAP gross profit
|
|
48,766
|
58,605
|
Non-GAAP gross margin
|
|
71.7%
|
70.9%
|
Share-based compensation
|
|
(50)
|
(33)
|
GAAP gross
profit
|
|
48,716
|
58,572
|
GAAP gross margin
|
|
71.7%
|
70.8%
|
[1] All non-GAAP measures exclude share-based
compensation expenses. For further details on non-GAAP measures,
please refer to the reconciliation tables and a detailed discussion
of the Company's use of non-GAAP information set forth elsewhere in
this press release.
|
[2] This
announcement contains translations of certain Renminbi ("RMB")
amounts into US dollars ("$") at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to US dollars as of and for the quarter ended March
31, 2012 were made at the noon buying rate of RMB6.2975 to $1.00 on
March 30, 2012 in the City of New York for cable transfers in
Renminbi per US dollar as certified for customs purposes by the
Federal Reserve Bank of New York. The Company makes no
representation that the Renminbi or US dollar amounts referred to
in this press release could have been or could be converted into US
dollars or Renminbi, at any particular rate or at all.
|
[3] Each of the Company's American Depositary
Shares ("ADS"), which are traded on New York Stock Exchange,
represents six of the Company's ordinary shares.
|
[4] Beginning in the first quarter 2012, in
accordance with Accounting Standards Update 2011-05, the Company is
presenting other comprehensive income and its components in the
unaudited condensed consolidated Statement of Comprehensive Income.
Other comprehensive income mainly consists of currency translation
adjustments relating to translating some of our subsidiaries'
financial statements from their functional currency to our
reporting currency, which is in the United States dollar. The
functional currency of our main subsidiaries in China is the
RMB.
|
SOURCE China Kanghui Holdings